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Say I can make either 10 sodas or 5 coffees and you can make either 12 sodas or coffees....how do I calculate who has the comparative advantage in the making of each coffee and soda?

2007-09-08 17:18:20 · 1 answers · asked by Lucky 3 in Education & Reference Homework Help

**TWO producers

2007-09-08 17:18:52 · update #1

1 answers

The cost of you producing one coffee is two sodas.
The cost of the other producer producing one coffee is one soda (if I read your question correctly).

If you specialize in soda and the other in coffee the economy will be better off.

2007-09-11 00:39:51 · answer #1 · answered by jemhasb 7 · 0 0

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